Authorizations and exposure

• Insures exporter against any political event of loss prior to shipment preventing the execution of the contract
• Pre-shipment political risk insurance at 85% of actual costs incurred executing contract (profit excluded)
• Used by exporters to offer better credit terms to foreign buyers for pre and post-delivery
• Cover up to 100% political risk as long as maximum amount of loss is not more than 90% of the South African contract value
• Policy can be pledged to a bank

• Available to insure financial institutions lending to corporate or sovereign buyers, or a project finance entity
• Maximum: Up to 85% of contract price
• Project finance criteria includes (but is not limited to):
• Independent feasibility study
• Shareholders equity contribution of at least 30% (preferably in cash)
• Debt-equity ratio must be maintained throughout the life of the project
• Acceptable payment mechanism (e.g., escrow account, off-take agreement)
• Completion guarantee by project owners
• Technical and financial management agreement
• Maintenance contracts to be entered into with South African suppliers
• Raw material and other inputs contracts must be assured
• Sufficient all-risk insurance
• Assets mortgaged and pledged to the lenders
• Host country’s environmental standards must be in place
• Project must have positive socio-economic impact

• Cover for South African boat builders expanding exporting capabilities
• Used for pre-export working capital or advance payment guarantee facilities
• Eligibility:
• Boat price up to approximately USD 20 million
• Purchase agreement between South African exporter and foreign buyer
• Boat builder must sign recourse deed with ECIC; security registered over the boat; boat builder shall cede the rights under its commercial insurance
• Term: Up to 5 years; minimum 6 months for working capital
• Criteria:
• Demonstration of employment creation or maintenance
• Boat maker to be in same line of business for 2 years; demonstrate latest 2 years’ performance and technical capabilities; and other credit criteria

• Benefit to foreign buyer in support of South African exporter that has failed to fulfill its contractual obligations; usually for contractors
• Term: Linked to the underlying supply contract
• Maximum bond value: Up to 10% of the contract value and can be increased with board approval on a case-by-case basis
• Risk participation agreement: ECIC insures a bank for a portfolio of bonds issued on various contractors/exporters

• Corporate loan facility to South African exporters for export contracts
• Maximum amount: Up to USD 20 million
• Tenor: 5 years (door-to-door)
• Quick approval process, simple documentation, and minimal security required

• Covered loan from an eligible lender and to foreign financial institution, the proceeds of which are on-lent to buyers of South African goods and services
• Payment default is placed on the foreign bank since it is the borrower of record
• Maximum credit amount: USD 20 million
• Tenor: Up to 5 years (or longer, on a case-by-case basis)
• Cover: 100% cover for both political and commercial
• Transactions require board approval

• Cover provided against political risk insurance causes of loss which prevents the foreign business to operate as envisaged for at least 1 year, and/or produce profits for 3 consecutive years
• Term: Up to 15 years
• Maximum liability: 90% of investment plus retained profits/dividends up to the insured amount over the life of the investment (capped at 200% of investment)
• Eligibility:
• Cash investment
• Shareholder/non-shareholder loans

• Lease and return of plant/equipment insurance cover
• Cover: Up to 100%

• Support transactions in ZAR and USD

• Down payment requirement:
• At least 15% of the export contract value must be paid directly to the exporter by the buyer before the starting repayment of the loan facility
• Of this 15%, at least 5% should be received upon contract signature

• Content eligibility:
• 70% South African content unless projects are located in Africa, then 50% South African local content and 20% from any other African country
• Eligible content can be materials less imported components
• Wages and salaries (paid in South Africa and/or other African country)
• Freight costs (paid in South Africa and/or other African country)
• Insurance premiums
• Finance charges (excluding post-delivery)
• Fees and charges paid for any other services performed on the exporters’ behalf by a South African and/or other African resident organization
• Fees and profits accruing to the exporter

• Tenor:
• Greater than 2 years, and up to 15 years
• Infrastructure projects up to 20 years (door-to-door)

• Political risk events: Expropriation, nationalization, confiscation, transfer restrictions, war and civil disturbance, breach of contract, protracted default, terrorism, sabotage, and piracy

• Commercial risk events: Insolvency, protracted default

• ECIC does not cover hedging and does not take documentation risk

• Adheres to anti-bribery, environmental and social impact, and sustainable lending policies as part of its mandate

• Strategic focus on supporting trade with Africa and other emerging markets

• Black industrialist support programme:
• No assessment fees are charged
• Insurance risk cover support on unsecured basis
• Start-up BI companies/projects will be supported essentially on the basis of the strength of business plan and executive management’s skills and experience in the concerned sector
• A BI export project to a maximum value of USD 20 million will be covered on the basis of 100% political and commercial risks
• Processed and consumable products may be covered provided they are in the designated IPAP sectors
• BI must be operating in a short list of sectors